| A successful baseball manager knows when it | | | | than Hugo Chavezs election as President of |
| is time to pull his starting pitcher out of | | | | Venezuela in 1998 and the disastrous effect |
| the game and bring in his ace reliever. A | | | | his governments anti-American policies had on |
| good poker player knows when to get up and | | | | numerous investors in Venezuelan businesses |
| leave the table with his winnings after the | | | | to understand the dramatic effect the |
| cards start going against him. A top boxing | | | | political stability of a nation can have on |
| trainer knows that sometimes it is better to | | | | your investment dollars. While it is probable |
| throw in the towel and save his fighter for | | | | that you will have a country or region well |
| another night, rather than having him go on | | | | researched before you invest in companies |
| all 12 rounds and risk serious injury. In the | | | | located there, it is also critical that you |
| world of sports, the top people know what to | | | | constantly monitor the political stability of |
| look for, and know the actions that need to | | | | that nation while your money is there. It is |
| be taken to give them the best chance for | | | | equally important to keep an eye on the |
| success. | | | | region as a whole as, particularly in Latin |
| | | | America and the Middle East, changes in some |
| The same holds true with investing and | | | | of the larger, more powerful countries in the |
| particularly in the area of foreign | | | | region can have a dramatic effect on the |
| investing. Knowing when it is time to cash in | | | | countries you may have your dollars invested |
| your overseas investments is every bit as | | | | in. |
| important as finding the right investments in | | | | |
| the first place. The challenge, of course, | | | | Regional and Multi-national Trends: What is |
| comes from the fact that your foreign | | | | hot in the United States is not necessarily |
| investments are affected by factors that, in | | | | going to be a best seller in Argentina, or in |
| many cases, your US investments are not. | | | | Germany, or in Singapore. Whether due to |
| While it is certainly true that we live in an | | | | economic considerations on the part of |
| increasingly global economy, those trends and | | | | customers or general taste and preference |
| events that affect the New York Stock | | | | changes that are influenced on a national or |
| Exchange and the NASDAQ and specifically the | | | | cultural level, each unique area of the world |
| companies that trade there will not | | | | has its own trends that need to be watched. |
| necessarily have the same effects on the | | | | This is particularly true in the area of |
| businesses you have invested in South | | | | consumer goods and manufacturing where what |
| America, Europe or Asia. In order to maximize | | | | customers are interested in purchasing can |
| the profits of your foreign investments, it | | | | often times change on a monthly or even |
| is necessary to monitor a number of factors | | | | weekly basis. While it is certainly not |
| within the specific regions you are doing | | | | possible to predict what any given market |
| business in and take these factors into | | | | will do every time, all the time, by |
| consideration when making the decision on | | | | carefully monitoring economic and cultural |
| whether to stay with an investment, or get | | | | shifts in a given region and keeping a close |
| out. These factors include: | | | | eye on the purchasing trends in that region, |
| | | | you will give yourself a much better chance |
| Regional Economic Stability: Despite | | | | of getting your money out at the proper time |
| occasional fluctuations, and upward and | | | | to maximize profits. |
| downward turns, the American economy has been | | | | |
| remarkably stable for years. While, as any | | | | The above examples are just three of the many |
| Venture Capitalist can tell you, this | | | | factors that need to be taken into |
| certainly does not make investing in American | | | | consideration when making the decision to |
| companies a foolproof proposition, | | | | stay with a foreign investment, or get out |
| devastating, fast moving economic downturns | | | | when you feel that the getting is good. While |
| in the over all US economy are few and, | | | | ultimately the decision on whether to stay or |
| thankfully, far between. This is not | | | | go will be based on your basic belief in a |
| necessarily the case worldwide. War, natural | | | | particular investments continuing viability |
| disasters, changes in a specific nations | | | | and profitability, it is critical that you |
| economic policy and in some areas even | | | | not only have access to the most up-to-date |
| revolution all of these factors play a part | | | | information across a broad spectrum of |
| in analyzing a regions economic stability. To | | | | economic and social trends, but also either |
| protect your investments, it is necessary to | | | | have or hire the expertise to analyze that |
| be completely familiar with the area in which | | | | information as it pertains to your specific |
| you have put your money, and keep a close eye | | | | investments. Overseas investing can be among |
| on both regional economies and the local | | | | the most profitable things you can do with |
| economies of the areas in which the | | | | your investment capital, but also one of the |
| businesses you have invested in are located. | | | | riskiest. The best way to minimize that risk |
| By watching the economic trends in a specific | | | | is to make sure you have the tools to allow |
| region closely during the entire length of | | | | you to get out with your profits intact, and |
| your investment, it is often times possible | | | | not stay in the game one inning too long. |
| to accurately assess exactly the right time | | | | |
| to pull your money out for maximum profit. | | | | Author Bio: Steve McLaughlin founded Global |
| | | | Market Insights, with offices in Europe and |
| Regional Political Stability and Policy: In | | | | the U.S., with his vision of giving clients |
| the United States, every two years national | | | | two synergistic competencies: knowledge of |
| elections are held which influence the | | | | the global marketplace and industry expertise |
| direction the nation as a whole will go. But | | | | in manufacturing, finance and information |
| regardless of whether it is the Republicans | | | | technology. Steve has over twelve years of |
| or Democrats who win, the essential stability | | | | international experience in three continents, |
| of our governmental structure and in most | | | | having started in executive search as a |
| cases the nations foreign policies remains | | | | Beckett-Rogers Associate. Steve is a graduate |
| basically unchanged. This, however, is most | | | | of Rice University, where he was student body |
| certainly not the case in many other parts of | | | | president, and completed post-graduate |
| the world where you might have your | | | | studies in International Economics at the |
| investments. One need look no further back | | | | Universidad Mayor, Santiago, Chile. |